AML/CTF Reforms for Real Estate
Overview
New anti-money laundering and counter-terrorism financing rules are being introduced for real estate professionals. The changes are designed to reduce the risk of illegal funds being hidden through property transactions, which have been classified as a ‘designated service’ under the law.
The reforms apply to real estate professionals involved in buying and selling residential, commercial, industrial and agricultural property and land. Property management and commercial leasing are not included.
The REIV is working closely with the federal government and industry partners to provide training and guidance so the industry is ready for the changes.
The REIV appoints First AML as its preferred AML compliance provider
In collaboration with First AML, we’re rolling out a staged education program, with tailored information sheets and webinars to help members prepare for their AML/CTF obligations.
Get equipped with the tools below to ensure you have the knowledge and confidence to meet your AML/CTF obligations by 1 July 2026.
Preparation Materials
- What's on this page
Overview
What You Need to Know
Understanding the Reforms
REIV Advocacy
Resources
- Key Dates
January 2026: Release of program start kits for the real estate sector.
31 March 2026: Enrolment opens for real estate professionals
1 July 2026: AML/CTF obligations commence for real estate professionals
Key Documents
Real Estate AML/CTF Starter Kit
The real estate program starter kit (‘starter kit’) helps small real estate and buyer’s agencies customise, use and maintain an AML/CTF program.
AML/CTF Rules
Provides detailed operational requirements and guidance on how to comply with the AML/CTF Act.
Core Guidance
Practical guidance on implementing AML/CTF obligations, including risk assessments, customer due diligence, reporting suspicious matters, and compliance program requirements.
Upcoming Training
Property transactions are considered high risk for money laundering because they involve large sums of money and complex ownership structures. This does not mean real estate professionals are suspected of wrongdoing.
From 1 July 2026, real estate professionals will be required to comply with Australia’s AML/CTF laws. This will introduce new obligations around how agencies manage risk, verify clients, and report suspicious activity.
In practical terms, agencies will need systems and processes in place to help prevent their services from being misused for money laundering or terrorism financing.
Under the AML/CTF regime, real estate professionals will be required to:
Verify the identity of clients
Assess the money laundering and terrorism financing risk of transactions
Monitor transactions and relationships on an ongoing basis
Keep records for prescribed periods
Report suspicious matters to AUSTRAC
Establish and maintain an AML/CTF compliance program
Train staff and appoint a compliance officer
The AML/CTF Rules are legally binding and must be followed. The rules prescribe the processes real estate professionals must follow to be AML/CTF compliant. Core guidance and starter kits are not mandatory, but they provide practical support and can help demonstrate a genuine, risk-based approach to compliance.
REIV Advocacy
In its submission to AUSTRAC, the REIV provided the following feedback to the government:
1. Know Your Customer (KYC) obligations would be most effective at the point of settlement.
The REIV recommended reviewing the delayed due diligence rules to enact KYC obligations at the point of settlement. This would ensure that the final buyer is identified accurately and that AML/CTF obligations are met at a pragmatic juncture.
Following meetings and a formal submission to AUSTRAC, they have initiated the process to amend the Rules to extend the deadline for delayed CDD, extending it from 15 days after exchange of contract (the current requirement) to 28 days after exchange or 3 business days before settlement (whichever is earlier).
2. Reliance rules should be expanded to allow real estate agents to unconditionally rely on legal representatives and financial institutions.
Real estate agents will be able to rely on conveyancers in most cases for buyer verification.
3. Expand the role of key authorities already embedded in the real estate transfer process.
Real estate transactions involve key government authorities, including SERV and the State Revenue Office, as well as large-scale organisations such as PEXA. Consider expanding their roles to fulfil AML/CTF obligations and compliance measures.
4. Established government technologies, including MyGov, can play an integral role.
Existing federal government technology that interacts with the national security infrastructure, including the MyGov application, should be utilised as a component of the VOI process.
5. AUSTRAC must provide definitive and realistic guidelines for its monitoring and compliance framework.
AUSTRAC must provide definitive and realistic guidelines for compliance measures. It needs to consider the prevalence of scenarios that may trigger compliance measures when there is no likelihood of fraudulent behaviour.
Resources
Attorney-General’s Department – Anti-Money Laundering and Counter-Terrorism Financial Amendment Bill
The Anti-Money Laundering and Counter-Terrorism Financial Amendment Bill outlines all changes introduced and passed by the Parliament of Australia in November 2024. These include the reforms that introduced compliance obligations and mechanisms for real estate professionals. The bill does not contain the rules governing the real estate sector’s obligations, as these are being finalised through 2025.
AUSTRAC’s AML/CTF page contains all relevant information and updates on reforms, including which industries are regulated, public consultation on rules, risks and indicators of suspicious activity, and legislative progress.
AUSTRAC – Money Laundering Australia National Risk Assessment report
AUSTRAC’s National Risk Assessment brings together insights from across Australia’s law enforcement, intelligence and regulatory agencies, private sector stakeholders and international financial intelligence units (FIUs) to assess risks associated with money laundering.
AUSTRAC – Regulatory expectations for the implementation of the AML/CTF reforms
AUSTRAC CEO Brendan Thomas has provided a regulatory expectations statement outlining changes under the AML/CTF reforms, including enrolment with AUSTRAC, having a compliance officer, implementing an AML program, and being prepared to report suspicious activity. AUSTRAC will provide guidance and support during the transition. It provides context for the reforms' changes and objectives.
AUSTRAC – What's coming soon to you
AUSTRAC is updating businesses on the support, resources, tailored guidance, risk-assessment templates, and compliance tools that will be made available to help them meet the new obligations under the reformed AML/CTF regime.
Parliament of Australia – AML/CTF Bill – Report (November 2024)
The AML/CTF report, compiled and provided by a non-partisan committee, covers the bill's purpose. It contains eight recommendations to improve the bill’s design and implementation.
AUSTRAC – e-Learning materials
AUSTRAC’s e-learning materials provide accessible education resources for reporting entities to increase their knowledge of AML/CTF compliance. Real estate professionals do not require a login to access e-learning materials.
AUSTRAC – Upcoming educational webinars
AUSTRAC is hosting a series of webinars to help new reporting entities, including real estate professionals, understand and meet their AML/CTF obligations. The sessions cover key topics, including AML/CTF compliance, risk assessments, customer due diligence, reporting requirements, and managing outsourcing arrangements.
AUSTRAC – Obligations Factsheet
Access the full AUSTRAC Obligations Factsheet to learn how the upcoming changes will affect enrolment, customer due diligence, reporting, and record-keeping requirements for your business.
AUSTRAC – Essentials Checklist
Use AUSTRAC’s Essentials Checklist to see how your business will be regulated from 2026 and prepare ahead of enrolment. The checklist provides key steps, resources, and webinars to help you understand your obligations, assess risks, and get ready for compliance.
The new AML/CTF rules were tabled in August 2025, following the two stage public consultation process. The rules come into effect for real estate professionals with other AML/CTF obligations 1 July 2026.